Quick response ... There were fears the bomber was targeting a nearby festival

The bomber, who was denied asylum in the country last year, had originally tried to get into a music festival hosting 2,500 people in the southern city of Ansbach - but was turned away as he had no ticket.

After being turned away the bomber walked to a nearby bar in the centre of Ansbach to set off the deadly device, which was packed with metal.

It has now emerged that the bomber was due to be deported to Bulgaria from Germany.

The attacker is being named locally as Mohamed Deleel and was already known to police for possession of drugs and also spent time in a psychiatric facility having attempted suicide twice before.

Residents at the man's asylum shelter have described him as a "lying attention seeker".

No further arrests have been made in connection with the blast, but an investigation by German prosecutors in underway.

Herrmann told reporters: "It's terrible ... that someone who came into our country to seek shelter has now committed such a heinous act and injured a large number of people who are at home here, some seriously.

"It's a further, horrific attack that will increase the already growing security concerns of our citizens.

"We must do everything possible to prevent the spread of such violence in our country by people who came here to ask for asylum."

"Because the rucksack and this bomb were packed with so many metal parts that could have killed and injured many more people, it cannot simply be considered a pure suicide attempt."

A U.S. intelligence official, speaking on condition of anonymity, said investigators would focus on what the bomber was doing before he left Syria and why he was denied asylum.

U.S. sources said the bombing did not appear to be a well-planned operation and could well turn out to be the act of another deranged individual.

Michael Siefener, spokesman for the regional interior ministry, said: "The explosion was set off deliberately."
He added authorities were trying to establish the exact cause.

Flash response ... Emergency services are on high alert in wake of recent attacks

Bavarian security officials confirmed the unnamed 27-year-old had been denied asylum a year ago after living in Germany for a year.

He was given leave to temporarily stay given the situation in his home country and was handed an apartment in Ansbach.

A large scale operation was underway overnight, with an area around the bar cordoned off, armed police on the scene and a helicopter hovereing nearby.

It was initially thought the explosion was caused by a gas leak, however late last night Ansbach Mayor Carda Seidel confirmed it was an explosive device, and a spokesman for the Bavarian Interior Ministry said the explosion was "not an accident".

This attack will surely fan the flames of criticism being levelled at Angela Merkel over her "open door" immigration policy.